Job Order Contracting – 5 Things to Never Do

1.     Forget to understand the everyone’s perspective

It’s not enough know construction, or how to manage a project once it is mobilized. You must understand and respect everyone’s perspective and needs from concept thru negotiations, execution, and final close-out.

Whether you are an Owner, Contractor, or Subcontractor, it’s critical to demonstrate that you are reliable and trustworthy and not manipulative or underhanded.

job order contracting

2.     Think that Negotiation Starts Sitting Down with Contracting/Purchasing

Negotiation starts early and, in truth, never finishes.  All interactions, from initial conceptual meetings, to the site visit, and throughout all phases of a task order,  build your persona and ultimately define your long-term relationships.

3.     Talk too much. Listen too little.

Pay close attention to every project participant, and use the knowledge to find common understanding.  Needs,.desires,  and concerns defined the preferred solution.

Great team players are clear on their ultimate interests, and under those of all parties. Take the time to understand the most important and desired outcomes of engineering, procurement, and contractors,  and work toward that goal.

4.     Squeeze every last penny.

JOC is a value-based construction delivery method.  The goal is to achieve a quality and satisfactory result at a reasonable cost.   While it’s critical to generate detailed line item cost estimates and assure financial transparency,  reciprocity and fairness are the ruling factors.

Both Owners and Contractors need to feel that they are indeed partners working toward a common goal of delivering quality on-time and on-budget projects for a reasonable cost.

5.     Negotiate without Considering the Perspectives and Needs of Procurement/Purchasing, Engineering, and the Contractor

Procurement teams  handles key steps in a JOC process and do technical, and engineering personnel.  All have their jobs to do and roles to play.  Assure every one is aware of value and scope of the project.